As Elon Musk continues his second month in the White House, Tesla owners are trading in their electric vehicles at record levels, according to a report by national car shopping site Edmunds. Since Musk’s involvement in the Trump administration, Tesla trade-ins have reached an all-time high, with many owners choosing to trade in their vehicles for new or used cars from different brands.
After assuming a leadership role in the Department of Government Efficiency and spending around $290 million to support President Trump’s reelection campaign, Musk has faced challenges in his efforts to cut government spending and reduce the federal workforce. Despite initial optimism from investors following Trump’s victory, Tesla’s stock price has dropped by 42% this year, leading to protests, vandalism, and arson targeting Tesla facilities and vehicles.
Tesla is also facing increased competition from other electric vehicle manufacturers like Ford, Chevrolet, and Volkswagen, with S&P Global Mobility reporting a decline in Tesla sales in the U.S. By offering competitive pricing, new technology, and less controversy, these competitors have the opportunity to attract Tesla owners and first-time EV buyers.
The Tesla brand’s reputation, closely tied to Musk, has been on the decline. Edmunds surveys show a decrease in interest in new Tesla models, with the brand’s value falling by 26% in 2024. While some Tesla owners trade in their EVs for newer Tesla models, the data from Edmunds did not consider these transactions. Tesla has not yet commented on the report.
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